Category: Florida BAR article
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What Type of Police Officer Testimony Regarding the Common Practices of Drug Dealers Is Admissible in the Courtroom?
Mr. Smith was caught selling drugs and at trial, a detective testified about the common practices of drug dealers. Mr. Smith appealed, claiming the testimony shouldn’t have been allowed. The article explores whether this type of testimony is admissible and if it always leads to a reversal of the verdict. It also looks at who…
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A Sea of Confusion: Expert Legal Testimony Adrift in Florida
When it comes to legal matters, experts usually can’t give their opinions in court because that’s the job of the judge and jury. But there are some exceptions to this rule. Florida has certain rules about when expert opinions can be allowed, but they’re not always clear. Different court decisions give different guidance, so it…
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Punitive Damages Against Fiduciaries: Leaving Hoppe Behind and Allowing Punitive Damages Where Equitable Relief Is Sought, Part II
In the last issue, we talked about whether punitive damages can be awarded in certain cases in Florida. This time, we’ll explain why those damages are available and clear up the old idea that they’re not allowed in these types of cases. In Florida, there’s a debate about whether juries should decide on punitive damages…
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Punitive Damages Against Fiduciaries: Leaving Hoppe Behind and Allowing Punitive Damages Where Equitable Relief Is Sought, Part I
Florida courts have a rule that says you can’t get punitive damages if you’re seeking fair treatment (equitable relief) in court. Some courts think this rule is outdated and believe that you should be able to get punitive damages even if you’re seeking fair treatment. This has caused a divide in the courts. This article…
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Allow Instant Replay in Jury Trial?
Florida law allows for the read back of testimony in both criminal and civil cases, but the jury is not informed of this right or how to request it. There is a proposal to play the prior testimony through the court’s recording system and to give the jury an instruction about their right to request…
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A Potpourri of Potential Pitfalls To Avoid with Qualified Domestic Trusts
In Florida, when one or both spouses are not U.S. citizens, special planning is needed for their estate. If the surviving spouse is not a U.S. citizen, they cannot receive a marital deduction for estate tax unless the property is held in a Qualified Domestic Trust (QDOT). This rule was created to prevent noncitizen spouses…
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Alternate Valuation: The Silver Lining to the Cloud Over the Market?
In 1998, the stock market took a big hit, causing a lot of people to lose money. But one good thing that can come out of it is potential estate tax savings. If someone dies when the stock market is high, their estate might have to pay a lot in taxes. But if the stock…
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Does a Spousal Elective Share Carry Out DNI?
In some states, old laws about what a spouse gets when their partner dies are no longer valid. Instead, there are new rules about how much the surviving spouse should get from the deceased spouse’s stuff. These new rules take into account things like the debts the deceased spouse owed, the cost of their funeral,…
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The Innocent Spouse Rule: Variations on a Theme
When a couple gets married, they file their taxes together. This means that both spouses are responsible for paying the correct amount of taxes, even if one spouse didn’t earn much money. If one spouse makes a mistake on their taxes, the other spouse is still on the hook for it. If the couple separates…
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Business and Tax Planning with the Portfolio Interest Exemption
The United States usually taxes foreign companies at a flat rate of 30 percent on any interest they receive from American sources. However, there’s a special rule called the portfolio interest exemption that can lower or eliminate this tax. This exemption doesn’t apply if the interest is connected to a U.S. business. This means that…
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Planning for Large Estates After TRA 97: A New Look at Some Old (Charitable) Friends
The Taxpayer Relief Act of 1997 didn’t actually provide relief for many rich people because the estate tax credit is only available for estates worth less than $10 million. This means that larger estates still face a 55 percent tax rate, just like before. As a result, estate planning techniques like life insurance trusts and…
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Defending the Accumulated Earnings Tax Case
Summary: The legal firm and attorneys are helping a famous singer deal with a contract issue. They are demanding fair treatment and compensation for the singer. The penalty tax for the unreasonable accumulation of corporate earnings is a part of the Tax Code and is meant to prevent corporations from keeping too much money without…
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Proposing Solutions to the Property Tax Structure and the Right of Citizens to Contact Local Elected
Should the law be changed to allow for more property tax exemptions for government and special district properties? Should citizens have more access to local officials to communicate about public hearings? These are some of the questions proposed in the Constitution Revision Commission’s Revision 10. The Florida Supreme Court has said that municipalities should pay…
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TRA 97 Is Not the Only Reason to Review Existing Estate Plans Involving Closely Held Stock
The Taxpayer Relief Act of 1997 provided a tax benefit for family-owned businesses, allowing an exclusion from a person’s taxable estate. This is important to consider when making estate plans involving closely held stock. There have been significant cases and IRS rulings that affect estate planning for closely held stock. In a hypothetical scenario, a…
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Challenging Tax Assessments on Contaminated Property in Florida
Environmental contamination can lower the value of property, but it’s often overlooked when assessing property taxes. In Florida, this is a big issue because there are many sites contaminated with petroleum and other chemicals. Even if the state offers to help clean up the sites, it’s slow and underfunded. Property owners can challenge their assessments…
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Estate Planning with Tenancy by the Entireties Property
Last New Year’s Eve, the IRS issued final regulations about disclaimers of tenancy by the entireties property, which was a cause for celebration for estate planners. However, there is still a problem in Florida that needs to be resolved before a surviving spouse can disclaim their interest in such property. This article will discuss the…
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Recent Developments Affecting 501(c)(3) Organizations
501(c)(3) organizations are facing more scrutiny from the government when they do business with private individuals and companies. A recent court case ruled that if a tax-exempt organization works with a professional fundraiser, they could lose their tax-exempt status. Another ruling says that tax-exempt hospitals can’t give their facilities to for-profit partners without consequences. Congress…
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International Implications of Check-the-Box Regulations
Entities can be classified as either a corporation or a partnership, and this classification affects how they are taxed. Partnerships don’t pay income tax themselves, but instead, their income is passed on to the individual members, who then report it on their tax returns. This means that members can claim losses and credits directly on…
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A Practical Discussion on Advising the Lottery Winner
If someone in Florida wins the lottery, their advisors need to understand the tax issues related to their winnings. It’s important to plan ahead to save as much money as possible on income, gift, estate, and generation-skipping taxes. If a client wins, they should not sign the ticket until they figure out who owns it.…
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The Roth IRA: What a Great Deal!
The new Roth IRA is a way for taxpayers to save and invest their money for the future. They can put in a few thousand to millions of dollars and the money grows tax-free. When they take the money out, they don’t have to pay taxes on it, as long as the account has been…
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1997 Tax Changes: Capital Gains Tax and Sale of a Primary Residence
In 1997, President Clinton signed a new tax law that changed how capital gains are taxed for individuals. For example, if a couple named Sam and Sally Smith decide to sell some stocks and other assets, they need to consider these new rules to figure out the best time to sell. Under the old rules,…
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Planning to Maximize the Section 2013 Credit
The TPT credit, allowed by the tax code, is a benefit for estate planning and administration. It can help in filing federal estate tax returns and can be used to plan for maximizing its potential benefit. It’s important to understand how it works and to consider it in both estate planning and administration phases. The…
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Estate, Gift, and Trust Tax Changes Made by Taxpayer Relief Act of 1997
In 1997, the Taxpayer Relief Act made changes to estate and gift tax laws. It increased the unified credit for estate and gift taxes, meaning people could exempt more money from these taxes. The maximum federal tax rate also increased for very large estates. However, compared to previous tax acts, the overall impact of the…
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Representing Clients Before the DOR and in State Tax Litigation
If you get a letter from the Department of Revenue saying they want to check your records, don’t panic. If they find a problem, you’ll get another letter with their proposed changes. You can disagree with their findings and file a protest. If you don’t, the changes become final and you can take the case…